Glad I kept my Precious metal investment intact.
About an hour after the COMEX floor session closed, the Federal Reserve announced in a statement to expectedly keep the key interest rate unchanged between zero and 0.25 percent. But what surprised the market is Fed committed to buy 300 billion dollars in longer-term Treasuries to help the U.S. economy recover. The central bank also is going to purchase more mortgage-backed securities and agency debt. LINK
What's the problem with the Fed buying 3 billion worth of treasuries and maintaining such a ridiculously low rate ? Well, they have the power to print extra money to make the purchase, increasing the monetary base, which in turn sends real inflation up (every outstanding $ now worth less because there's so many around). Remember, the Fed is NOT a government agency, it is owned by private banks. Of course it is working hand in hand with the government because their purpose is to maintain the banking statu-quo (banks making billions on the back of almost everybody).
The gold market was numb and had almost forgotten about this, gold going slightly under 900. About one single day after the news, it is now back up above 950!
Then what about my GE recommendation? GE is now above 10$ and fighting serious technical resistance. I would not buy now. If someone had followed my advice about two weeks ago, they could cash in the over 40% profit now and wait for the next entry point. 40% in two week on the biggest American blueship would be too beautiful a lucky strike to let go (we're not talking penny stock here, this market is crazy!).
Did I profit from it? No, I just sat on my long term gold and silver like a lazy dragon. That's what I've been advising for the past few years and that's what I'm still advising unless you have lots of extra "risk money" available. I saw the opportunity but I don't have any such "risk money" available (especially as long as I will be able to just make a 100% sure 13% investment by paying back credit cards, which I plan to do as soon as I finish school and find a job ).
Ps.: advice to those who are stuck with a credit card balance they can't pay within a year: think seriously about converting the whole thing into longer term debt with a fixed rate. These low rates won't last forever and as soon as serious inflation kicks in, the central bank will raise rate and credit card rates will follow up. That's what I plan to do as soon as my employment status gets stabilized.